Standard Bank and Fintech partner Addendum Financial Technologies, are proud to announce a remarkable double-global-award this month, recognising their innovative approach in supply chain finance (SCF).

Standard Bank and Addendum’s clients, Omnia and Barloworld Equipment were named winners of two global awards at the annual SCF Awards 2023 hosted by The SCF Community, namely Best Supply Chain Finance Programme: Building and Construction for Barloworld Equipment and Best Supply Chain Finance Programme: Manufacturing for Omnia.

“I am very proud of this double award from the SCF Community. The team has continued to push the boundaries of innovation and also elevated the level of collaboration with our clients, Omnia and Barloworld Equipment. A special thanks to Standard Bank, who funded both these deals. Their flexibility and unwavering support of these SCF programmes were critically important ingredients in achieving success, “ says Emuel Schoeman, Co-Founder, MD and Head of Working Capital at Addendum about the achievement.

“This is a fantastic achievement for our clients, Addendum Financial Technologies and Standard Bank, and testament of the tremendous value that Supply Chain Finance provides to our clients in optimising their working capital and strengthening their supply chains. The speed of execution and success of these programmes were attributed to the great collaboration between all parties involved, innovative technology and enhanced product capabilities,” adds Thiru Mutusamy, Head: Product, Supply Chain Finance at Standard Bank.

Standard Bank and Addendum’s collaboration has demonstrated exceptional performance and breakthrough achievements in the realm of SCF in Africa, setting new industry benchmarks.

Barloworld Equipment’s ground-breaking 8-day SCF programme implementation

Barloworld Equipment partnered with Standard Bank and Addendum to implement a SCF programme in a record-breaking eight days. Barloworld Equipment, a leader in providing construction and mining equipment in Africa, sought a supply chain finance funding line for one of its largest suppliers.

Stephen Mahlare, Divisional Director: Finance, Barloworld Equipment, described the initial challenges faced by the company in these terms: “Barloworld Equipment required a flexible and innovative working capital solution. When we approached Addendum and Standard Bank, we were at a critical juncture in our business cycle, requiring a solution within a 10-day timeframe. The margin for error was virtually non-existent.”

The rapid programme implementation of only 8 days, brought substantial financial benefits and resilience to Barloworld Equipment’s supply chain, leading to further expansion of the programme across other jurisdictions. The success of this programme is attributed to the collaborative efforts, focused on minimising complexity and leveraging expertise from all parties, combined with environmental sustainability through its digitised and paperless nature.

“A key driver in the successful implementation of the Supply Chain Finance programme was the remarkable collaboration among the deal teams from Barloworld, Addendum and Standard Bank. Their thorough understanding of Barloworld’s requirements and tailored solutions ensured that all key aspects of the client requirements were met successfully. This highlights the true benefit of a well-articulated, co-created solution, something we at Standard Bank take pride in when partnering with our fintech partners and clients.” says Msawenkosi Hlanti, Head: Trade Sales, Transaction Banking SA, Corporate and Investment Banking.

Regarding Omnia’s winning programme, the SCF Community wrote: “This well-deserved victory positions Barloworld Equipment as a true trailblazer, setting a new standard for excellence within the construction and building sector in the arena of supply chain finance.”

Omnia SCF Programme innovates with flexible payment terms

Omnia Fertilizer, a division of Omnia Holdings Limited, partnered with Standard Bank and Addendum to design a unique SCF programme during a challenging period marked by the Covid-19 pandemic and the Russia-Ukraine conflict. This programme, unlike traditional SCF programmes, enabled negotiation of longer payment terms and margin benefits with suppliers, offering flexibility with various funding options tailored to each supplier’s financial situation.

“The Omnia SCF Programme more than met our expectation and has significantly changed out Net Working Capital profile. It has also significantly changed our payment terms with suppliers, specifically smaller and foreign suppliers.” says Jacques de Villiers, Group Head: Supply Chain, Omnia

The programme not only unlocked working capital for Omnia but also provided support to its suppliers with competitive working capital options, strengthening their long-term relationships. The success of this initiative is evident in the high percentage of traded invoices, increased working capital, and strengthened supplier relationships.

Commenting on Barloworld Equipment’s SCF programme in a recent article, The SCF Community wrote: “As the winner in the Manufacturing category, Omnia’s programme exemplifies a strategic and effective approach to supply chain financing, solidifying their status as an industry leader in driving innovation and efficiency in manufacturing supply chains.”

Winning partnership

The double-award win by Standard Bank and Addendum is a testament to their commitment to innovation in supply chain finance industry in Africa. Their award-winning work with Barloworld Equipment and Omnia has set new standards in the industry, demonstrating the power of strategic partnerships and cutting-edge technology in transforming financial operations.

This achievement not only underscores their leadership in the financial sector but also their dedication to fostering sustainable and efficient supply chain practices.